« Time's Ticking Away: $50,000 Powerball® Prize Still Unclaimed! | Main | JURASSIC WORLD Second Chance Promotion from the Iowa Lottery »

May 30, 2025

Comments

Hi, Barbara. Two issues are involved in the question you have asked: withholdings and income taxes. The winner will have to pay income tax on these lottery prizes when she files her income taxes for the 2025 calendar year. Withholdings are applied to lottery prizes of more than $600 when they are claimed. The withholdings are designed to cover the entire tax liability that someone may have for claiming a lottery prize, but the exact tax amount the person will owe is dependent upon their circumstances outside of winning the lottery. For a lottery prize of more than $600, 3.8 percent state withholding applies. For a prize of more than $5,000, an additional 24 percent federal withhold applies. The amounts referenced here apply to each individual prize.

What about taxes? Are they based on each individual ticket? I believe federal taxes come into play at $5,000. The above winner "only" won $3,000, multiple times. Since the total prize amount of aggregated tickets is $45,250, will they have to pay federal taxes? Or not since each ticket prize was below $5,000?

THAT'S JUST AWSOME!! COGRATS TO YOU!

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)

SEARCH ialotteryblog.com

June 2025
We're the external relations team at the Iowa Lottery, here to offer you an inside look at all the ins and outs of the lottery industry. Visit often for all the behind-the-scenes details!